Borrowing and holding marketable securities are substitute financing alternatives, although the two strategies may have different costs.

Question

Quizplus · Accepted Answer

Borrowing and holding marketable securities both provide financing, but the costs may differ. Borrowing typically involves paying interest on the borrowed funds, while holding securities may involve transaction fees and potential fluctuations in the value of the securities.

Borrowing and Holding Marketable Securities Are Substitute Financing Alternatives, Although